When your humble scribe receives not one, not two but five or six unsolicited mails from different people that say things like “Waddya think of XYZ.v?” or “Hey, maybe you should take a look at XYZ.v….” or “Dude, I’ve heard that XYZ.v is onto something good at Project ABC...” in the space of just a few days, it’s something that raises a big fat windblown wavy red flag at IKN Nerve Centre™. It happens on occasion and it happened about two months ago when all of a sudden one of those “coincidence” flurries of mails all noting, suggesting or mentioning Goldex Resources (GDX.v) hit your author’s mailbox. It was enough to get me checking a bit and I saw that the company was very small and had a couple of things on the go that included a drill program at a project called El Arco in Mexico as well as a early stage thing in Guatemala.
Ok fair enough. Then I noted that around the same time in 2012 GDX.v had been running financings at tiny 5c placement prices. And that Canaccord had picked up finder’s fees. Then I dug a little more and found that this little gem of a quote in an earlier NR about El Arco….
“Goldex VP of exploration, Larry Kornze, formally the regional manager of Mexico and Central America for Barrick Gold has called EL Arco “The best undrilled property in the America’s” and was part of the geology team responsible for the planning of the upcoming drill program.”
…which got those red flags unfurled that much further (and not just for the bad grammar). The point I’m trying to get to here is that all of a sudden, and I don’t know who or by what means, somebody decided to pump the hell out of this dog. Was it a newsletter? An e-mail list? A bullboard poster? I honestly don’t know, but I do know that whoever was behind the pump got enough people’s greed glands working because of that coincidental flurry of mails received from various apparently unconnected quarters and let’s face it, if your author gets 5 mails asking about a tiny junior you can guarantee the message has got across to a vastly larger crowd of people.
The reason to feature a teeny tiny exploreco such as GDX.v on these humble pages isn’t to laugh at its drill results from El Arco released today, because the way that “the best undrilled property in The America’s (sic)” returned little more than dusters….
“Anomalous gold and silver values were intersected in the sampled quartz veins. Each sample measured 5 foot in length. 35 samples contained from 0.10 to 0.63 g/t Au and 2 samples contained in excess of 1g/t. 54 samples ranged from 1 g/t Ag up to 4 g/t and 3 samples had 5.8 g/t Ag up to maximum of 7.0g/t Ag. Remaining samples contained no appreciable results.”
….. from its 13 holes program shouldn’t be much of a surprise after the above preamble. We mention (pick on?) GDX.v today more as (yet another) warning to those investors that might get carried away on hearing extra special super duper inside information about a junior company and its fabbo property that nobody’s heard of yet but is just bound to be the next Yanacocha/Voisey’s Bay/Insert-Preferred-Example-Here. GDX.v is the topical example du jour, but the main point here is the sad fact that people constantly lie to you in order to remove your money from your back pocket and insert it into theirs. Another sad fact is that there are still far too many people who approach the junior mining market with a naive grin and a trusting smile, all ready to hear about some whizzo intel that will make them instant squillionaires that gets passed to them, completely free of charge, on a bullboard.
Hence the title of this post. Have a nice day.